# ASC 740-830-30: Income Taxes — Foreign Currency Matters — 30 Initial Measurement

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/740/830/#30-initial-measurement)

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## ASC 740-830-30: 30 Initial Measurement

[Read section](https://asc.understandingaccounting.org/asc/740/830/#30-initial-measurement)

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#### Foreign Financial Statements Restated for General Price Level Changes

##### [740-830-30-1](https://asc.understandingaccounting.org/asc/740/830/#740-830-30-1)

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In foreign financial statements that are restated for general price-level changes, the deferred tax expense or [benefit](https://asc.understandingaccounting.org/glossary/b/#benefit "See Tax (or Benefit).") shall be calculated as the difference between the following two measures:

1.  a
    
    Deferred tax assets and liabilities reported at the end of the current year, determined in accordance with paragraph [830-740-25-5](https://asc.understandingaccounting.org/asc/740/830/#740-830-25-5)
    
2.  b
    
    Deferred tax assets and liabilities reported at the end of the prior year, remeasured to units of current general purchasing power at the end of the current year.

##### [740-830-30-2](https://asc.understandingaccounting.org/asc/740/830/#740-830-30-2)

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The remeasurement of deferred tax assets and liabilities at the end of the prior year is reported together with the remeasurement of all other assets and liabilities as a restatement of beginning equity.

##### [740-830-30-3](https://asc.understandingaccounting.org/asc/740/830/#740-830-30-3)

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Example 1 (see paragraph [830-740-55-1](https://asc.understandingaccounting.org/asc/740/830/#740-830-55-1)) illustrates the application of this guidance.